Government Approves Field Trials for New Polymer Banknotes
Introduction of Polymer Banknotes
File image of FM Nirmala Sitharaman. (Photo:X)
New Delhi, Aug 11: The Indian government has given the green light for the testing of one billion polymer banknotes in denominations of Rs 10 and Rs 20, as announced in Parliament on Tuesday.
The Reserve Bank of India (RBI) had submitted a proposal to the government, based on recommendations from its central board, under Section 25 of the RBI Act, 1934, to initiate field trials for these polymer notes.
Finance Minister Nirmala Sitharaman stated in a written response to the Rajya Sabha that if these trials yield positive results, the polymer notes will be regularly issued in the specified denominations.
"The government has approved this proposal. According to the RBI, these polymer banknotes will be introduced alongside traditional paper notes," she added.
Sitharaman mentioned that the procurement process is currently in its early stages, making it difficult to provide a precise timeline for the rollout of the polymer notes or the associated costs.
In July, the RBI's currency printing division had called for global Expressions of Interest (EoIs) for the supply of polymer substrate sheets with security features.
Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) invited bids from qualified domestic and international manufacturers by August 18 for the production of opacified polymer substrate sheets for banknote printing.
Polymer notes, crafted from durable plastic materials, are known for their resistance to wear and tear, offering a longer lifespan compared to traditional paper currency. Reports indicate that the tender includes strict national security requirements for potential suppliers.
In June, RBI Governor Sanjay Malhotra mentioned that the RBI is considering a proposal to introduce polymer or plastic currency notes.